The first contract, placed by Italian main contractor Snamprogetti, will cover the construction package for the gas-oil separation plant (GOSP), wet crude handling facilities and related facilities. The joint venture of Paris-based Technip with US-based Bechtel has also awarded CCC the construction package covering the AFK gas plant and associated works (MEED 11:3:05).

In keeping with recent practice, CCC's contracts will initially be based on unit rates and will be converted to the lump-sum turnkey (LSTK) model once the main contractors have completed designs.

Saudi Aramco selected in March Snamprogetti and Technip/Bechtel for the two main process packages on the fast-track AFK development, which will produce 500,000 barrels a day (b/d) of crude, 550 million cubic feet a day (cf/d) of sales (dry) gas and 195,000 b/d of ethane and natural gas liquids (NGL) by late 2007. Snamprogetti's contract, valued at $800 million-1,200 million, is for the construction of a GOSP, crude handling units, a 250 million-cf/d gas gathering and compression facility, crude stabilisation units and a water injection plant. The scope of works for the $1,500 million-2,000 million Technip/Bechtel contract covers the construction of two trains for gas conditioning and ethane and NGL recovery with total capacity of 900 million cf/d.

Bidding is under way for further packages on the AFK programme. About nine companies have submitted bids for the electro-industrial package, which is estimated to be worth SR 350 million-400 million ($93 million-106 million). The bidders include Nesma & Partners Contracting Company, Almabani General Contractors, El-Seif Engineering Contracting Establishment, Saudi Oger, Abdulrehman Turki Company (Atco) and Al-Osais, all local,and Athens-based Joannou & Paraskevaides (J&P - Overseas).

Unit rate bids were also submitted in late July by eight local contractors to Aramco for the estimated SR 250 million ($67 million) contract covering temporary camp facilities at Khursaniyah. The bidders include Nesma & Partners, Almabani, El-Seif, Oger, Atco and Al-Osais.